Texas-based family entertainment and dining operator CEC Entertainment LLC's $650 million senior secured notes will become current on May 1, 2025. S&P Global Ratings believes this approaching maturity (in less than 15 months) exposes the company to market risks outside of its control that increase its refinancing risk, despite management?s intention to refinance the notes before they become current. At the same time, CEC reported improved operating results and cash flow in the most recent quarters, and we expect it will generate materially positive free operating cash flow (FOCF) in 2025. To recognize its increasing refinancing risk, we placed all our ratings on CEC, including the 'B-' issuer credit rating, on CreditWatch with negative implications. We expect to resolve the
